Emcure Pharma Raised INR 583 Cr Ahead of its on IPO on 3rd July

According to a circular uploaded on the BSE's website, the pharmaceutical firm decided to allot INR 57.8 Lakh equity shares to 48 funds at INR 1,008 per share, amounting to a total transaction size of INR 582.6 Cr.

Bain Capital-backed Emcure Pharmaceuticals raised INR 583 Cr from anchor investors, one day before its initial public offering (IPO) opened for public subscription on 3rd July. 

The anchor investors included major financial institutions such as HDFC Mutual Fund, ICICI Prudential MF, SBI MF, Abu Dhabi Investment Authority, Goldman Sachs Asset Management, among others.

Emcure’s IPO to End on 5th July

Emcure Pharmaceuticals' IPO opened for public subscription on July 3 and will close on July 5. 

The issue price band is set between INR 960 to INR 1,008 per share. The IPO comprises a fresh issue of equity shares worth INR 800 Cr and an offer for sale (OFS) of 1.14 Cr equity shares worth INR 1,152 Cr at the upper end of the price band by promoters and existing shareholders. This brings the total public issue size to INR 1,952 Cr.

In the IPO, up to 108, 900 equity shares have been reserved for employees. Furthermore, half of the issue size is reserved for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors. Investors can bid for a minimum of 14 shares and in multiples of 14 shares thereafter.

Promoter Satish Mehta and BC Investments IV Ltd, an affiliate of Bain Capital, are among those selling shares in the OFS. Satish Mehta currently holds a 41.85% stake in the company, while BC Investments owns a 13.07% stake.

Proceeds from the fresh issue will be used to repay debt and for general corporate purposes. Post-issue, brokerage houses estimate the company's market capitalization to exceed INR 19,000 Cr.

Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India are the book-running lead managers for the issue. The company's equity shares will be listed on the BSE and NSE on July 10.

Earlier this month, the company received approval from the Securities and Exchange Board of India (SEBI) to proceed with the IPO.

Day 1 of Emcure’s IPO

Emcure Pharmaceuticals' IPO which opened for subscription on Wednesday, saw robust demand from non-institutional investors, leading to full subscription by the latter half of the first day. 

As of June 3, the IPO had been subscribed 1.22 times in the retail category and 1.92 times in the non-institutional investor (NII) portion. However, there have yet to be bids in the QIB category.

Based in Pune, Emcure Pharmaceuticals develops, manufactures, and markets a wide range of pharmaceutical products across several major therapeutic areas.